Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1887-04-29
FHB UNION PACIFIC.
Its Affairs Discussed Before
the Pacific Railroad
Commission.
President Adams Talks
About the Company's
Progress.
Branches and Component
Parts Of the Consolidated
Union Pacific.
Attemps to Save the Cattle
QnarantIne-Inslaalng the Union
Paefae-Tntsr-Staae Commerce
Activity In the on Mar
- kst-Hls Tel 81 Geld.
PaeIae naIIroaa CommIs.Iop,

Paeiae Railroad CommissIsa.
NKw Yonx, ApriI SS.-Ths inouisisiol
into the workings and financial man
agement Of all railroads that have re
ceived aid from the Government II
bonds vas resamed today by the Com
miasion appointed by the President.
Charles Francis Adams occupied th,
witness chair and said that be had beer
President Of the Union Pacific road
three years and knew . great deal Of the
road and its management and wsrkins
during bis Presidency. bus knsW aluos
nothing about 10 previous 10 that time
and it was not his business TO lock intS
the history Of the road. but 10 post him.
self on the consolidated road.
BE heard vague stories that Directors
Gould, Dillon and Ames had 90 con.
Quoted affairs that they were In debt 10
the company. Adams had investigated
these charges, bat be was not permitted
10 state his conclusions. Adams had
looked into the Nevada, Omaha Valley
aad all Of the branches Of the Union
Pacific. IL was q general examination.
Each Of them had q separate organiza.
tion. The Union Pacific Consolidated
10 composed OF the Kansas Pacific, the
Denver Pacific and the cid Union Paci-
hc. Adams thought the charter of the
Union Pacific Consolidated very narrow.
He did not suppose the road proper bad
power to build q mile Of branch track
under that charter. He il supposed 70
be President of ell the branches. The
of the branches are kept in
Omaha and In Boston. For the trans
portation OF the books the Commission
would have 10 zee Comptroller Mink.
He relied emphaticaliy on Mink.
Adams examined the afsirs Of the Den
s-r 4 South Park. II was built By Gov.
Evans, Of Colorado, in 1883 Who sold it's
$50 miles 10 the Union Pacific. Gov.
Evans has no connection with the
Unisn Pacific.
Witness did nos know whether the
books had been trans
ferred to the Ia on Pacific or not.
Adams bad heard who made the bar
gain which transferred Governor Evans
road to the Union Pacific, bat he did
aot know who ID was. There was q
strong competition for the possession of
The road, and Gould. Of the Union Pa
,ifc, Adams thought, succeeded IN clos
nR the purchase for his road.
Prices we're mach inflated in Colora-
10 at this time. and the stock OF the
road was turned over al an extravagant
price, Is it turned out soon after. Col
,Fado practically collapsinR. The Evans
road was built to satisfy famous min
nR boom, and IL carried men to the
,..OA wka~a kaiaa ha1 haaa IN. tn kha
ground and called mines.
when the boom collapsed, a. every
1ne knows II did" said Adams, "the
road collapsed. Il has lost money every
rear since. / ought to say, In justice o
ihe men who purchased the road, that
before the bargain bad been completed,
ihey we're offered By General Palmer
Bl50, 900 for the bargain. ] state this
Sn the yord Of Mr.. Ames. The net loss
o operating the road last year vas $780,
'OO.
The ups aud downs In Colorado ere
Iuch that don't think the future OF
his road is hopeless, IL they struck
rood mines or Q good mining country.
there is no chance Of agricultural ad-
In that region. Adams said
hat whatever price vas paid for the
road, Il vas charged TO the investment
account as SIS, ,O00,0 900.
The Nevada Central Branch vas taken
1p. This road 10 80 miles leng and was
built on the expectation Of the develop
meut Of Nevada. ID WAS scQuired by
The Union Pacific 10 1882. and about the
irst thing Adams did e. President vas
70 throw this branch overheard, as be
could see no future for it. Phelps,
Stokes, 4 90. Of this city furnished the
capital for that road, and when it vas
boaRht by the Union Pacific its cost
price was charged 70 the expense ae
count. ~ vas at Q loss to know Why
they had bought the road and l made
inquiry into il. II. II. Clark. General
Manager Of the Missouri Pacific. bought
the road for the Union Pacific. when
I closed IL up IL was In debt to the Union
Pacific for t65o.0O0. Il never paid more
than expenses"
Adams had investigated the matter
and could not find that any money fol
the Nevada Central had gone 10 AM
one connected vita she Union Pacific
Gould had grand scheme Of develop
ing an active railway system west oi
Omaha. st. Joseph and Kansas City, 81
which deliveries we're 70 be made u
roads running to 81. Louis and Chicago
A part Of this scheme vas the pufchasl
Of the Kansas Central. whieh ran alsnl
the northern part Of Kansas. A part o.
the Central branch vas Subsidized. ou
there were many bFanchss feeding .
which we're not Subsidized. His scheml
contemplated the tapping OF 1exas ant
A.A - awNAfA WA1e afNAa
ward. Gould got interested IN othe
matteFs aud disposed OF this seoe ne
Tue Central branch ts leased 10 tbs Mis-
souri, Paeiac. the indncement 10 81
Missouri Paeific being the oontrel o
thas erAfia. Toe road is very profitable
a. IL 10 an Agricultural coantFy. Tnl
psr les interested In she sale 10 III
Cnion Pacific were in nOwise interesteC
Ia the Union Paside road.
Adams said thai the stock Of tn
Central Pacific. Union Paeiao AMI
Kansas Pacific were consolidated ami
taken up BY the bonds of the consoli
dated Union Pacific Railway Oonpaul
in 1889, and usder q provisional enartel
later on SO 0oo. 600 was issned- Their
uere never anT other issues. The rOa'
had always paid cash for everything
and thsFe never had bean . construction
eompany 10 the company. EveFytainI
had been dcns honestly. Mr.. Adam
also foand The Osuncil bluas strec
railway good about O mile along 90
properties. whics road had beooD
possessed IN the former regime .
think this rsad bsaRht this street. FAil
vav beoause 10 facilitated getting d
into the town and ! believe ws oal
make it Q sAlesble piece Of pgopeFty.
The DenyeE and Marshall Railroad
another brsnsh, runs from Denver 3
milss 10 the coal region. Thirty Ave p
seat vAs paid for that branch. IN
LsAvsnvoFsh and T0peka Railroad
running between the Union Pseihs an
tie Atohison aad Santa Fe was pul
ehased jointly By tbsss to reads.
haA ess0. 800 worth sf stoek and wAs na
far from IS miles IN iength- Il -
hoaQht 70 csnrees wIth TIE topeka an
h barely pays Adams shOaght III
rad was no lonxeF psoassbie 70 "a
Unaon Pas a.. and he bad t1o1zhs b
emily Aa4iFs wo1,d SHAPE toeNa
sssvss - thaa this road En3 tns A'ea.
son eoaId divide their several ] Il
properties and p~FAAps ieis beAneo.